MANILA, Philippines -- ExxonMobil, the world's biggest oil and gas producer, is set to start oil exploration in the country and said it hopes it would produce encouraging results by the middle of next year.

Stephen Greenlee, vice president for ExxonMobil Exploration Company, met with President Gloria Macapagal-Arroyo on Friday in Malacanang to inform her of the company's plan on the exploration program.

"We told the President what we're doing, what we expect to do in the future and what out hopes and vision is for the area and the President responded that she's welcoming that we're coming in, that we're working at such a good fiscal and regulatory regime here in the Philippines, and gave us nothing but encouragement for our future activities," Greenlee said after the meeting.

If the data is encouraging, the company would drill exploration wells from mid-2009, he added.

The Philippines now imports practically all of its oil requirements after some modest offshore deposits that were tapped during the 1970s energy crisis were exhausted.

"A drilling program could cost over $100 million for us to explore the potential," Greenlee said. "If we're successful and we find what we hope to find, then the development of the site would (cost) several million dollars," he added.

"Continued success would be big deal for the Philippines, will be a major foreign investment in the country, and there will be a growth and multiplier effect in the region itself," Greenlee added.

Energy Secretary Angelo Reyes said Exxo's entry would be a "major milestone in oil development and exploration" in the country.

"We are optimistic that this will be good news because when Exxon enters a country, it means they are confident in it because they are a major player," he added.

"ExxonMobil is the largest explorer and producer of gas in the world, they have the technical competence and financial muscle to undertake major oil exploration and production efforts," he said.